| 截至月份: | 2025年9月30日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 中煙國際（香港）有限公司 | | | 呈交日期: | 2025年10月2日 | | | I. 法定/註冊股本變動 不適用 | | | FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06055 | | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 691,680,000 | | 0 | | 691,680,000 | | 增加 / 減少 ...

Group 1 - As of September 19, 93 stocks reached their 52-week highs, with Huake Intelligent Investment (01140), Xincheng Power (01148), and Huashang Energy (00206) leading the increase rates at 22.30%, 20.00%, and 17.65% respectively [1] - The closing prices for the top three stocks that reached new highs are Huake Intelligent Investment at 0.170, Xincheng Power at 0.300, and Huashang Energy at 0.305 [1] - Other notable stocks that reached new highs include Handa Fu Holdings (01348) with a high rate of 16.89% and Meijiehui Holdings (01389) at 13.75% [1] Group 2 - The report also lists stocks that reached their 52-week lows, with Shanga Holdings (00412) experiencing the largest decline at -34.98%, followed by Huaying Construction (01582) at -21.47% [3] - The closing price for Shanga Holdings is 3.360, while Huaying Construction closed at 0.360 [3] - Other stocks with significant declines include China Information Technology Equity (08568) at -17.74% and Tai Hing Properties (00277) at -11.90% [3]

中煙國際（香港）有限公司 China Tobacco International (HK) Company Limited (Incorporated in Hong Kong with limited liability) （於香港註冊成立的有限公司） (Stock Code 股份代號: 6055) 19 September 2025 China Tobacco International (HK) Company Limited (the "Company") – Notice of Publication of 2025 Interim Report and Supplemental Information on Continuing Connected Transaction (the "Current Corporate Communications") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at ...

中煙國際（香港）有限公司 China Tobacco International (HK) Company Limited (Incorporated in Hong Kong with limited liability) （於香港註冊成立的有限公司） (Stock Code 股份代號: 6055) N O T I F I C AT I O N L E T T E R 通 知 信 函 Dear Registered Shareholders, 19 September 2025 China Tobacco International (HK) Company Limited (the "Company") – Notice of Publication of 2025 Interim Report and Supplemental Information on Continuing Connected Transaction (the "Current Corporate Communications") The English and Chinese versions of the Company's C ...

中煙國際（香港）有限公司 China Tobacco International (HK) Company Limited (Incorporated in Hong Kong with limited liability) （於香港註冊成立的有限公司） (Stock Code 股份代號: 6055) 通 知 信 函 各位登記股東： 中煙國際（香港）有限公司（「本公司」） –2025 中期報告及持續關連交易補充信息（「本次公司通訊文件」）之刊發通知 隨函附上以英文及中文印發的本公司 2025 中期報告及持續關連交易補充信息以供閱覽。 本公司的本次公司通訊文件備有中、英文版本，並已上載於香港聯合交易所有限公司（「聯交所」）網站（www.hkexnews.hk）及本公司網站 （www.ctihk.com.hk），歡迎瀏覽。 徵集電子聯絡資料 為確保及時收到最新的公司通訊及可供採取行動的公司通訊，本公司建議 閣下透過掃描本函背頁之回條（「回條」）上列印的 閣下專屬二維碼來 提供 閣下的電子郵件地址。或者， 閣下也可以簽署回條並交回本公司的香港股份過戶登記處（「股份過戶處」）香港中央證券登記有限公司， 地址為香港灣仔 ...

```markdown [Definitions](index=3&type=section&id=I.%20Definitions) [Glossary of Terms](index=3&type=section&id=I.1%20Glossary%20of%20Terms) This section defines key terms and abbreviations used in the interim report for clarity and consistency - The report defines several key terms, including the '2021-2024 Overseas Supply Framework Agreement', 'Acquisition', 'China Tobacco' or 'CNTC Group', 'China Tobacco International Group', and 'ESG', to ensure clarity and consistency of the report content[5](index=5&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) [Company Information](index=7&type=section&id=II.%20Company%20Information) [Board of Directors and Management](index=7&type=section&id=II.1%20Board%20of%20Directors%20and%20Management) This section lists the company's board members, senior management, and committee compositions - The Chairman of the Board and Non-executive Director is **Shao Yan**, and the General Manager is **Dai Jiahui**[11](index=11&type=chunk) - The Chairman of the Audit Committee is **Zou Xiaolei**, the Chairman of the Remuneration Committee is **Zou Xiaolei**, the Chairman of the Nomination Committee is **Shao Yan**, the Chairman of the Connected Transaction Control Committee is **Wang Xinhua**, and the Chairman of the Strategic Development Committee is **Shao Yan**[11](index=11&type=chunk) [Basic Company Information](index=8&type=section&id=II.2%20Basic%20Company%20Information) This section provides the company's basic registration and listing information Basic Company Information | Metric | Details | | :--- | :--- | | Stock Short Name | China Tobacco Hong Kong | | Stock Code | 6055 | | Headquarters and Principal Place of Business | Unit 1002, 10/F, Tower A, China Life Center, One Harbour Gate, 18 Hung Luen Road, Hung Hom, Kowloon, Hong Kong | | Auditor | KPMG | | Company Website | www.ctihk.com.hk | [Company Profile and Group Structure](index=9&type=section&id=III.%20Company%20Profile%20and%20Group%20Structure) [Company Overview](index=9&type=section&id=III.1%20Company%20Overview) China Tobacco Hong Kong, listed in 2019, is the sole tobacco business listed company within the China Tobacco system - China Tobacco Hong Kong is the sole tobacco business listed company within the China Tobacco system, listed on the Stock Exchange in June 2019[14](index=14&type=chunk) - The company's business covers new tobacco products, cigarettes, leaf tobacco, and cigars, with market coverage in over **50 countries and regions** including East Asia, Southeast Asia, North and South America, and Central and Eastern Europe[14](index=14&type=chunk) - The company will continue to uphold the development philosophy of 'respecting the market, rules, and investors', cultivate core businesses, pursue cross-border M&A, and enhance market value[14](index=14&type=chunk) [Group Structure](index=9&type=section&id=III.2%20Group%20Structure) This section outlines China Tobacco Hong Kong's equity structure and its role in various tobacco businesses - China Tobacco General Corporation holds **72.29%** equity in China Tobacco Hong Kong through China Tobacco International Group[15](index=15&type=chunk) - China Tobacco Hong Kong's businesses include leaf tobacco import, leaf tobacco export, cigarette export, new tobacco products export, and Brazil operations[15](index=15&type=chunk) - Brazil operations are managed by CBT, with China Tobacco Brazil holding **51%** equity and Alliance One Brazil holding **49%**[15](index=15&type=chunk)[16](index=16&type=chunk) [Financial Highlights](index=10&type=section&id=IV.%20Financial%20Highlights) [Key Financial Data](index=10&type=section&id=IV.1%20Key%20Financial%20Data) For H1 2025, revenue grew **18.5%** to **HKD 10.32 billion**, net profit rose **9.8%** to **HKD 706 million**, with EPS of **HKD 1.02** Key Financial Data for the Six Months Ended June 30, 2025 | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,316,249 | 8,704,047 | 18.5% | | Gross Profit | 946,476 | 964,215 | -1.8% | | Profit for the period attributable to equity holders of the Company | 706,353 | 643,341 | 9.8% | | Earnings Per Share (HKD) | 1.02 | 0.93 | - | | Interim Dividend Per Share (HKD) | 0.19 | 0.15 | 26.7% | | Cash and Cash Equivalents and Short-term Bank Deposits | 3,975,052 | 2,808,865 | 41.5% | | Net Assets | 3,700,825 | 3,143,484 | 17.7% | | Return on Net Assets | 21.7% | 23.8% | -2.1pp | | Current Ratio | 1.52 | 1.42 | 10pp | - The Board declared an interim dividend of **HKD 0.19 per share**, a **26.7%** year-on-year increase, to reward shareholders and share development achievements[19](index=19&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=V.%20Management%20Discussion%20and%20Analysis) [Overall Operating Results](index=11&type=section&id=V.1%20Overall%20Operating%20Results) In H1 2025, revenue reached **HKD 10.32 billion** (+18.5%) and net profit **HKD 706.4 million** (+9.8%) amid complex global conditions 2025 H1 Overall Operating Results | Metric | Amount (HKD) | Y-o-Y Growth | | :--- | :--- | :--- | | Operating Revenue | 10.32 billion | 18.5% | | Profit attributable to equity holders of the Company | 706.4 million | 9.8% | - Leaf tobacco import business: Closely monitor international trade, ensure timely arrival of imported leaf tobacco, enhance synergy with subsidiaries, and secure stable raw material supply[21](index=21&type=chunk) - Leaf tobacco export business: Seize market supply-demand changes, optimize pricing strategies, enhance profitability; strengthen source synergy, significantly increase Brazil source sales; expand business in non-exclusive operating regions[21](index=21&type=chunk) - Cigarette export business: Expand self-operated business scale, deepen cooperation with duty-free retailers, optimize business structure and product portfolio, and increase introduction of new product specifications[21](index=21&type=chunk) - New tobacco products export business: Actively respond to geopolitical conflicts and regulatory changes, guide suppliers to accelerate product innovation and R&D, and strengthen overseas intellectual property protection[21](index=21&type=chunk) - Brazil operations: Expand raw tobacco procurement areas, increase procurement scale in non-China markets, enhance resource integration and allocation capabilities; expand sales regions and customer base, improve CBT's ESG governance effectiveness[21](index=21&type=chunk) - Operational management: Adhere to lean management, promote business-finance integration, improve capital utilization, control operating costs, and perfect risk prevention and control mechanisms[21](index=21&type=chunk) - ESG management: Initially establish an ESG strategic system supported by 'green development', 'people-oriented', 'community embeddedness', and 'supply chain management', enhancing ESG governance effectiveness and information disclosure quality[24](index=24&type=chunk) [Business Operations Review](index=12&type=section&id=V.2%20Business%20Operations%20Review) This section reviews H1 2025 operational performance across key business segments, analyzing revenue, volume, and gross profit changes [Leaf Tobacco Import Business](index=12&type=section&id=V.2.1%20Leaf%20Tobacco%20Import%20Business) H1 2025 leaf tobacco import revenue grew **23.5%** to **HKD 8.399 billion**, but gross profit fell **7.7%** to **HKD 687.2 million** due to rising costs Leaf Tobacco Import Business Performance | Metric | H1 2025 | Y-o-Y Change | | :--- | :--- | :--- | | Import Volume | 97,881 tons | +2.5% | | Operating Revenue | 8,398.9 million HKD | +23.5% | | Gross Profit | 687.2 million HKD | -7.7% | - Revenue increase was mainly due to higher overall average selling prices of leaf tobacco products during the period compared to the same period last year[23](index=23&type=chunk) - Gross profit decline was mainly due to supply-demand dynamics, where the increase in cost of leaf tobacco purchased from CBT exceeded the increase in average selling price, leading to a decrease in gross profit margin[23](index=23&type=chunk) [Leaf Tobacco Export Business](index=13&type=section&id=V.2.2%20Leaf%20Tobacco%20Export%20Business) H1 2025 leaf tobacco export revenue grew **25.9%** to **HKD 1.156 billion**, with gross profit up **124.1%** to **HKD 63.1 million** Leaf Tobacco Export Business Performance | Metric | H1 2025 | Y-o-Y Change | | :--- | :--- | :--- | | Export Volume | 38,476 tons | +12.7% | | Operating Revenue | 1,155.6 million HKD | +25.9% | | Gross Profit | 63.1 million HKD | +124.1% | - Significant performance growth was mainly due to strengthened alignment between supply and demand, active expansion into new markets and customers, and precise grasp of market supply-demand trends, continuous optimization of pricing strategies, effectively increasing average selling prices and gross profit margins[26](index=26&type=chunk) [Cigarette Export Business](index=13&type=section&id=V.2.3%20Cigarette%20Export%20Business) H1 2025 cigarette export volume fell **7.9%**, but revenue rose **0.8%** to **HKD 551.8 million**, and gross profit increased **16.8%** to **HKD 141.8 million** Cigarette Export Business Performance | Metric | H1 2025 | Y-o-Y Change | | :--- | :--- | :--- | | Export Volume | 1,018,523 thousand sticks | -7.9% | | Operating Revenue | 551.8 million HKD | +0.8% | | Gross Profit | 141.8 million HKD | +16.8% | - Sales volume decline was mainly affected by shipping rhythm, while revenue and gross profit growth benefited from continuous efforts to expand self-operated channels and introduce new products catering to market demand, effectively enhancing the profitability of the cigarette business[28](index=28&type=chunk) [New Tobacco Products Export Business](index=14&type=section&id=V.2.4%20New%20Tobacco%20Products%20Export%20Business) H1 2025 new tobacco products export saw significant declines in volume, revenue, and gross profit due to geopolitical conflicts and regulatory changes New Tobacco Products Export Business Performance | Metric | H1 2025 | Y-o-Y Change | | :--- | :--- | :--- | | Export Volume | 81,330 thousand sticks | -65.4% | | Operating Revenue | 14.6 million HKD | -66.5% | | Gross Profit | 0.8 million HKD | -62.4% | - Performance decline was mainly due to adverse impacts of geopolitical conflicts on the supply chain, leading to reduced outbound volume in key markets[29](index=29&type=chunk) - Changes in target market regulatory policies, where suppliers' production equipment failed to meet product access requirements in a timely manner, significantly reduced the efficiency of product entry into target markets[29](index=29&type=chunk) [Brazil Operations](index=14&type=section&id=V.2.5%20Brazil%20Operations) H1 2025 Brazil operations saw export volume drop **34.8%** to **7,928 tons**, revenue fell **50.3%** to **HKD 195.3 million**, and gross profit declined **21.0%** to **HKD 53.6 million** Brazil Operations Performance | Metric | H1 2025 | Y-o-Y Change | | :--- | :--- | :--- | | Export Volume | 7,928 tons | -34.8% | | Operating Revenue | 195.3 million HKD | -50.3% | | Gross Profit | 53.6 million HKD | -21.0% | - Performance decline was mainly due to extreme weather conditions during the planting season, leading to a year-on-year decrease in the quantity of leaf tobacco products available for sale[31](index=31&type=chunk) - Changes in product structure, with a significant year-on-year increase in the sales proportion of higher gross profit margin but lower average selling price leaf tobacco by-products[31](index=31&type=chunk) [Outlook for H2 2025](index=15&type=section&id=V.3%20Outlook%20for%20H2%202025) In H2 2025, the company will focus on high-quality business development and enhanced corporate governance for sustainable shareholder returns - Adhere to the 'outward and inward' development strategy, leverage international capital platform advantages, gather industry resources, explore potential market opportunities, and enhance core competitiveness[33](index=33&type=chunk) - Continuously strengthen supply chain resilience, respond to international leaf tobacco supply fluctuations, enhance stability of imported high-quality leaf tobacco supply, expand business development space, and improve profitability of the leaf tobacco business[33](index=33&type=chunk) - Strengthen research on the duty-free cigarette market, deepen collaborative marketing with duty-free retailers, optimize business structure, tap into channel potential, and accelerate the overseas expansion of domestic cigars[33](index=33&type=chunk) - Actively respond to geopolitical conflicts, strengthen cooperation between production and sales, promote innovation and R&D of new tobacco products and improvement of supplier production equipment, and optimize cooperation models and pricing strategies in key markets[33](index=33&type=chunk) - Brazil operations adhere to the 'three improvements and one control' development approach, optimizing raw tobacco procurement regional layout, expanding sales channels, enriching product categories, and increasing cigar leaf sales volume[33](index=33&type=chunk) - Continuously build a systematic ESG indicator evaluation system, respond to the Stock Exchange's new climate information disclosure requirements, conduct greenhouse gas emission inventories, and deepen corporate social responsibility practices[33](index=33&type=chunk) - Accelerate digital transformation, optimize integrated management processes, enhance human resource information management, strengthen analytical and forecasting capabilities, focus on financing cost control, and improve internal control mechanisms[34](index=34&type=chunk) [Financial Review](index=16&type=section&id=V.4%20Financial%20Review) This section reviews H1 2025 financial performance, analyzing key metrics like revenue, gross profit, net profit, EPS, liquidity, and gearing ratio [Revenue, Cost of Sales, and Gross Profit](index=16&type=section&id=V.4.1%20Revenue,%20Cost%20of%20Sales,%20and%20Gross%20Profit) H1 2025 revenue grew **18.5%** to **HKD 10.316 billion**, cost of sales rose **21.1%**, and gross profit decreased **1.8%** to **HKD 946.5 million** Revenue, Cost of Sales, and Gross Profit | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | 10,316.2 | 8,704.0 | +18.5% | | Cost of sales | 9,369.8 | 7,739.8 | +21.1% | | Gross Profit | 946.5 | 964.2 | -1.8% | - Revenue growth was primarily driven by increases in leaf tobacco import, cigarette export, and leaf tobacco export businesses[35](index=35&type=chunk) - Gross profit decline was mainly attributable to the leaf tobacco import business and Brazil operations[35](index=35&type=chunk) [Net Other Income](index=16&type=section&id=V.4.2%20Net%20Other%20Income) H1 2025 net other income increased **5.2%** to **HKD 72.0 million**, driven by higher interest income from short-term bank deposits Net Other Income | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | | Net other income | 72.0 | 68.4 | +5.2% | - Mainly due to increased interest income driven by the larger scale of short-term bank deposits[35](index=35&type=chunk) [Administrative and Other Operating Expenses](index=16&type=section&id=V.4.3%20Administrative%20and%20Other%20Operating%20Expenses) H1 2025 administrative and other operating expenses rose **6.1%** to **HKD 79.5 million**, mainly due to increased staff and professional fees Administrative and Other Operating Expenses | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | | Administrative and other operating expenses | 79.5 | 74.9 | +6.1% | | Of which: Staff costs | 34.2 | - | - | | Of which: Depreciation and amortization of intangible assets | 20.9 | - | - | | Of which: Professional fees | 4.8 | - | - | - Increase in administrative and other operating expenses was mainly due to higher staff costs and professional fees resulting from the Group's expanded operating activities[36](index=36&type=chunk) [Finance Costs](index=16&type=section&id=V.4.4%20Finance%20Costs) H1 2025 finance costs significantly decreased by **28.2%** to **HKD 82.9 million**, primarily due to lower CBT bank borrowings and interest rates Finance Costs | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | | Finance costs | 82.9 | 115.5 | -28.2% | - Significant decrease in finance costs was mainly due to lower scale and interest rates of CBT's bank borrowings[37](index=37&type=chunk) [Profit for the Period and Profit Attributable to Equity Holders of the Company](index=17&type=section&id=V.4.5%20Profit%20for%20the%20Period%20and%20Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) H1 2025 profit for the period grew **6.3%** to **HKD 722.6 million**, with profit attributable to equity holders up **9.8%** to **HKD 706.4 million** Profit for the Period | Metric | H1 2025 (million HKD) | H1 2024 (million HKD) | Y-o-Y Change | | :--- | :--- | :--- | | Profit for the period | 722.6 | 679.7 | +6.3% | | Profit for the period attributable to equity holders of the Company | 706.4 | 643.3 | +9.8% | - Growth in profit for the period and profit attributable to equity holders of the Company was primarily driven by increased cigarette export and leaf tobacco export businesses, and lower finance costs[39](index=39&type=chunk) [Earnings Per Share](index=17&type=section&id=V.4.6%20Earnings%20Per%20Share) H1 2025 basic and diluted EPS increased to **HKD 1.02** from **HKD 0.93**, reflecting enhanced profitability Earnings Per Share | Metric | H1 2025 (HKD) | H1 2024 (HKD) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 1.02 | 0.93 | - As no potential dilutive ordinary shares were issued, the diluted earnings per share presented is the same as the basic earnings per share[41](index=41&type=chunk) [Liquidity, Financial Resources, and Gearing Ratio](index=17&type=section&id=V.4.7%20Liquidity,%20Financial%20Resources,%20and%20Gearing%20Ratio) As of June 30, 2025, total assets were **HKD 10.003 billion**, with strong liquidity and a gearing ratio of **0.69** Liquidity and Financial Resources | Metric | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | | :--- | :--- | :--- | | Total Assets | 10,002.8 | 9,816.7 | | Cash and Cash Equivalents and Short-term Bank Deposits | 3,975.1 | 2,857.6 | | Total Liabilities | 6,301.9 | 6,629.4 | | Gearing Ratio | 0.69 | 0.94 | | Current Ratio | 1.52 | 1.43 | - The Board believes the Group has sufficient resources to support its operations and meet its foreseeable capital expenditures[42](index=42&type=chunk) - The Group adopts a prudent treasury policy, implements strict cash risk management, with cash surpluses primarily in USD and HKD short-term deposits[42](index=42&type=chunk) [Net Current Assets](index=17&type=section&id=V.4.8%20Net%20Current%20Assets) As of June 30, 2025, net current assets increased to **HKD 3.244 billion** from **HKD 2.838 billion** at year-end 2024 Net Current Assets | Metric | June 30, 2025 (million HKD) | December 31, 2024 (million HKD) | | :--- | :--- | :--- | | Net current assets | 3,244.1 | 2,837.8 | [Foreign Exchange Risk](index=17&type=section&id=V.4.9%20Foreign%20Exchange%20Risk) The Group primarily transacts in USD and BRL, with CBT's functional currency in USD but most costs in BRL - The Group primarily enters into transactions in USD and Brazilian Real, with CBT's functional currency being USD, but most costs and expenses are paid in Brazilian Real[44](index=44&type=chunk) - For H1 2025, the Group did not enter into any hedging arrangements but will continue to closely monitor foreign exchange risk[44](index=44&type=chunk) [Pledge of Assets](index=18&type=section&id=V.4.10%20Pledge%20of%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[45](index=45&type=chunk) [Contingent Liabilities](index=18&type=section&id=V.4.11%20Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[46](index=46&type=chunk) [Review of Continuing Connected Transactions](index=19&type=section&id=VI.%20Review%20of%20Continuing%20Connected%20Transactions) [Connected Persons](index=19&type=section&id=VI.1%20Connected%20Persons) This section identifies China Tobacco Hong Kong's connected persons, including China Tobacco and Alliance One Group - Connected persons at the issuer level include China Tobacco General Corporation and China Tobacco International Group and their respective subsidiaries[48](index=48&type=chunk) - Connected persons at the subsidiary level are the Alliance One Group, as it holds **49%** of CBT's total issued share capital through Alliance One Brazil[49](index=49&type=chunk) [Overview of Continuing Connected Transactions](index=19&type=section&id=VI.2%20Overview%20of%20Continuing%20Connected%20Transactions) H1 2025 continuing connected transactions with issuer-level parties totaled **HKD 8.403 billion** in revenue and **HKD 1.985 billion** in procurement Continuing Connected Transaction Amounts | Transaction Type | Total Revenue (million HKD) | % of Total Revenue | Total Procurement (million HKD) | % of Total Procurement | | :--- | :--- | :--- | :--- | :--- | | Continuing connected transactions at issuer level | 8,402.8 | 81.5% | 1,985.1 | 27.4% | | Continuing connected transactions at subsidiary level | 302.5 | 2.9% | 1,056.6 | 14.6% | - In determining the prices and terms of connected transactions, the pricing policies set out in the exclusive operation and long-term supply framework agreements, and the guidelines under the Listing Rules, have been complied with[50](index=50&type=chunk) [Details of Continuing Connected Transactions](index=20&type=section&id=VI.3%20Details%20of%20Continuing%20Connected%20Transactions) This section details continuing connected transactions, including parties, pricing, annual caps, and actual amounts for various businesses [Sales Transactions for Leaf Tobacco Import Business](index=20&type=section&id=VI.3.1%20Sales%20Transactions%20for%20Leaf%20Tobacco%20Import%20Business) The company sells imported leaf tobacco to China Tobacco International under an exclusive agreement, with H1 2025 sales of **HKD 8.399 billion** - The contracting parties are the Company and China Tobacco International, with an indefinite agreement term[52](index=52&type=chunk)[53](index=53&type=chunk) - The pricing policy is P = A × 1.06, meaning a **6%** markup on the procurement price from suppliers (or **3%** for a small portion of specific cigarette brand leaf tobacco)[53](index=53&type=chunk) Sales Transactions for Leaf Tobacco Import Business Amount | Metric | H1 2025 (million HKD) | | :--- | :--- | | Transaction Amount | 8,398.9 | | % of Total Leaf Tobacco Import Revenue | 100% | [Procurement Transactions for Leaf Tobacco Export Business](index=21&type=section&id=VI.3.2%20Procurement%20Transactions%20for%20Leaf%20Tobacco%20Export%20Business) The company procures leaf tobacco from China Tobacco entities for export, with H1 2025 procurement of **HKD 1.080 billion** - The contracting parties are the Company and various entities under China Tobacco General Corporation, with an indefinite agreement term[56](index=56&type=chunk)[57](index=57&type=chunk) - The pricing policy is P = A × (1 – applicable markup ratio), where the applicable markup ratio is no less than **1%**, **2%**, or **4%**, depending on product variety, annual output, average selling price, customer, and supplier[58](index=58&type=chunk)[59](index=59&type=chunk) Procurement Transactions for Leaf Tobacco Export Business Amount | Metric | H1 2025 (million HKD) | | :--- | :--- | | Transaction Amount | 1,080.2 | | % of Total Leaf Tobacco Export Procurement | 98.9% | [Procurement Transactions for Cigarette Export Business](index=23&type=section&id=VI.3.3%20Procurement%20Transactions%20for%20Cigarette%20Export%20Business) The company procures duty-free cigarettes from China Tobacco entities for export, with H1 2025 procurement of **HKD 303.1 million** - The contracting parties are the Company and various entities under China Tobacco General Corporation, with an indefinite agreement term[63](index=63&type=chunk)[64](index=64&type=chunk)[66](index=66&type=chunk) - Pricing for high-end and other first-class duty-free cigarettes, according to Document No. 250, shall not be lower than **35%** or **45%** of the domestic ex-tax transfer price[68](index=68&type=chunk)[70](index=70&type=chunk) - Prices for other duty-free cigarettes are determined through fair negotiation and are not subject to government-mandated price floors[71](index=71&type=chunk) Procurement Transactions for Cigarette Export Business Amount | Metric | H1 2025 (million HKD) | | :--- | :--- | | Transaction Amount | 303.1 | | % of Total Cigarette Export Procurement | 99.4% | [Procurement Transactions for New Tobacco Products Export Business](index=26&type=section&id=VI.3.4%20Procurement%20Transactions%20for%20New%20Tobacco%20Products%20Export%20Business) The company procures new tobacco products from China Tobacco entities for export, with H1 2025 procurement of **HKD 13.8 million** - The contracting parties are the Company and various entities under China Tobacco General Corporation, with an indefinite agreement term[74](index=74&type=chunk)[75](index=75&type=chunk) - The pricing policy is P = A × (1 – applicable markup ratio), with the current markup ratio being at least **1%**[77](index=77&type=chunk)[78](index=78&type=chunk) Procurement Transactions for New Tobacco Products Export Business Amount | Metric | H1 2025 (million HKD) | | :--- | :--- | | Transaction Amount | 13.8 | | % of Total New Tobacco Products Export Procurement | 100% | [Procurement Transactions for Leaf Tobacco Import Business (Specific)](index=28&type=section&id=VI.3.5%20Procurement%20Transactions%20for%20Leaf%20Tobacco%20Import%20Business%20(Specific)) The company procures leaf tobacco from China Tobacco International (North America) under a 2024-2026 framework agreement - The contracting parties are the Company and China Tobacco International (North America), with an agreement term from November 17, 2024, to December 31, 2026[81](index=81&type=chunk)[86](index=86&type=chunk) - The pricing policy, according to Document No. 135, is that the Company shall add a **6%** markup to the procurement price when selling leaf tobacco products to China Tobacco International[85](index=85&type=chunk) Procurement Transactions for Leaf Tobacco Import Business Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount | 575.7 | 1,210.9 | | % of Total Leaf Tobacco Import Procurement | 10.1% | - | [Agency Business for Leaf Tobacco Sales](index=30&type=section&id=VI.3.6%20Agency%20Business%20for%20Leaf%20Tobacco%20Sales) The company acts as an agent for leaf tobacco export for China Tobacco entities, earning **HKD 3.9 million** in H1 2025 commissions - The contracting parties are the Company and various entities under China Tobacco General Corporation, with an agreement term from November 17, 2024, to December 31, 2026[90](index=90&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk) - Commission rates are determined based on the Company's invested resources and the unit price of the relevant leaf tobacco products, typically higher for lower unit price products, and are expected to be no less than **1%** of the contract amount (excluding cut tobacco)[95](index=95&type=chunk) Agency Business for Leaf Tobacco Sales Transaction Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount (Commission) | 3.9 | 5.4 | | % of Total Leaf Tobacco Export Revenue | 0.3% | - | [Sales and Procurement Transactions with Alliance One Group](index=32&type=section&id=VI.3.7%20Sales%20and%20Procurement%20Transactions%20with%20Alliance%20One%20Group) The Group engages in tobacco sales and procurement with Alliance One Group under extended framework agreements [Tobacco Sales Framework Agreement](index=33&type=section&id=VI.3.7.1%20Tobacco%20Sales%20Framework%20Agreement) The company sells leaf tobacco to Alliance One International, with H1 2025 sales of **HKD 237.5 million** against an annual cap of **HKD 701 million** - The contracting parties are the Company and Alliance One International, with the agreement term extended to December 31, 2025[101](index=101&type=chunk)[103](index=103&type=chunk) - Pricing policy is fair negotiation, considering factors such as leaf tobacco quantity and quality, procurement costs (raw materials, utilities, plant rent, freight, warehousing, staff costs), seasonal demand, and past sales prices[103](index=103&type=chunk) Tobacco Sales Framework Agreement Transaction Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount | 237.5 | 701.0 | [CBT Tobacco Sales Framework Agreement](index=34&type=section&id=VI.3.7.2%20CBT%20Tobacco%20Sales%20Framework%20Agreement) CBT sells leaf tobacco to Alliance One International, with H1 2025 sales of **HKD 64.9 million** against an annual cap of **HKD 1.203 billion** - The contracting parties are CBT and Alliance One International, with the agreement term extended to December 31, 2025[106](index=106&type=chunk)[108](index=108&type=chunk) - Pricing policy is fair negotiation, considering factors such as leaf tobacco quantity and quality, CBT procurement costs (raw materials, utilities, plant rent, freight, warehousing, staff costs), seasonal demand, applicable exchange rates, and taxes[110](index=110&type=chunk) CBT Tobacco Sales Framework Agreement Transaction Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount | 64.9 | 1,203.1 | [Tobacco Procurement Framework Agreement](index=35&type=section&id=VI.3.7.3%20Tobacco%20Procurement%20Framework%20Agreement) The company procures leaf tobacco from Alliance One International, with H1 2025 procurement of **HKD 974.7 million** against an annual cap of **HKD 2.585 billion** - The contracting parties are the Company and Alliance One International, with the agreement term extended to December 31, 2025[113](index=113&type=chunk)[115](index=115&type=chunk) - Pricing policy is fair negotiation, considering factors such as leaf tobacco quantity and quality, procurement costs (raw materials, utilities, plant rent, freight, warehousing, staff costs), seasonal demand, and past procurement prices[115](index=115&type=chunk) Tobacco Procurement Framework Agreement Transaction Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount | 974.7 | 2,585.1 | [CBT Tobacco and Services Procurement Framework Agreement](index=36&type=section&id=VI.3.7.4%20CBT%20Tobacco%20and%20Services%20Procurement%20Framework%20Agreement) CBT procures agricultural materials, leaf tobacco, and processing services from Alliance One Brazil - The contracting parties are CBT and Alliance One Brazil, with the agreement term extended to December 31, 2025[118](index=118&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) - Agricultural material procurement price is Alliance One Brazil's procurement price plus a fixed markup of approximately **2.5%**[122](index=122&type=chunk) - Leaf tobacco procurement prices are determined through fair negotiation, referencing quantity, quality, market conditions, and prices from independent third-party suppliers[122](index=122&type=chunk) - Processing services are charged at a fixed fee of approximately **BRL 1.192 per kilogram** of processed leaf tobacco[122](index=122&type=chunk) CBT Tobacco and Services Procurement Framework Agreement Transaction Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount | 81.9 | 302.2 | [Procurement Transactions for Export of Leaf Tobacco to Non-Exclusive Operating Regions](index=38&type=section&id=VI.3.8%20Procurement%20Transactions%20for%20Export%20of%20Leaf%20Tobacco%20to%20Non-Exclusive%20Operating%20Regions) The company procures leaf tobacco from China Tobacco entities for export to non-exclusive regions, with H1 2025 procurement of **HKD 12.3 million** - The contracting parties are the Company and various entities under China Tobacco General Corporation, with an agreement term from November 27, 2024, to November 26, 2027[125](index=125&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - The pricing policy is P = A × (1 – applicable markup ratio), where the applicable markup ratio is no less than **1%**, **2%**, or **4%**, depending on product variety, annual output, average selling price, customer, and supplier[130](index=130&type=chunk)[132](index=132&type=chunk) Procurement Transactions for Export of Leaf Tobacco to Non-Exclusive Operating Regions Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount | 12.3 | 60.9 | [Procurement Transactions for Export of Cigarettes to New Specific Regions](index=40&type=section&id=VI.3.9%20Procurement%20Transactions%20for%20Export%20of%20Cigarettes%20to%20New%20Specific%20Regions) The company procures cigarettes from China Tobacco entities for export to new regions, with H1 2025 procurement of **HKD 0** - The contracting parties are the Company and relevant entities under China Tobacco General Corporation, with an agreement term from April 8, 2024, to December 31, 2026[135](index=135&type=chunk)[137](index=137&type=chunk) - Pricing for high-end and other first-class duty-free cigarettes, according to Document No. 250, shall not be lower than **35%** or **45%** of the domestic ex-tax transfer price[140](index=140&type=chunk)[141](index=141&type=chunk) - Prices for other duty-free cigarettes are determined through fair negotiation, and procurement prices for taxed market cigarettes are also determined through fair negotiation, referencing factors similar to duty-free cigarettes[142](index=142&type=chunk)[143](index=143&type=chunk) Procurement Transactions for Export of Cigarettes to New Specific Regions Amount and Annual Cap | Metric | H1 2025 (million HKD) | 2025 Annual Cap (million HKD) | | :--- | :--- | :--- | | Transaction Amount | 0 | 66.3 | [Confirmation and Review Opinion of Independent Non-Executive Directors](index=44&type=section&id=VI.4%20Confirmation%20and%20Review%20Opinion%20of%20Independent%20Non-Executive%20Directors) Independent non-executive directors confirmed that continuing connected transactions were fair, reasonable, and in the Group's and shareholders' best interests - Independent non-executive directors confirmed that continuing connected transactions were entered into in the ordinary and usual course of business of the Group[152](index=152&type=chunk) - Confirmed that transactions were entered into on normal commercial terms or terms more favorable to the Group, and in accordance with the agreements governing such transactions, whose terms are fair and reasonable and in the overall interests of the shareholders[152](index=152&type=chunk) - The review included reviewing financial information, sampling transaction documents, reviewing independent financial advisor reports, holding Connected Transaction Control Committee meetings, and inquiring about management's control measures[151](index=151&type=chunk) [Review Opinion of Independent Financial Advisor](index=45&type=section&id=VI.5%20Review%20Opinion%20of%20Independent%20Financial%20Advisor) Independent financial advisor confirmed continuing connected transactions were fair, reasonable, and in the Group's and shareholders' best interests - Independent financial advisor Somerley Capital Limited confirmed that permanent continuing connected transactions were entered into in the ordinary and usual course of business of the Group, on normal commercial terms or terms more favorable to the Group, and whose terms are fair and reasonable and in the overall interests of the Group and its shareholders[154](index=154&type=chunk)[155](index=155&type=chunk) - Somerley also confirmed that fixed-term continuing connected transactions and continuing connected transactions with Alliance One Group met the above standards[155](index=155&type=chunk) - The review included obtaining and reviewing transaction documents, discussing with management, inquiring about internal control measures, and comparing markup ratios with industry peers[154](index=154&type=chunk) [Other Information](index=46&type=section&id=VII.%20Other%20Information) [Interim Dividend](index=46&type=section&id=VII.1%20Interim%20Dividend) The Board declared an interim dividend of **HKD 0.19 per share** for H1 2025, an increase from **HKD 0.15** last year Interim Dividend | Metric | H1 2025 (HKD/share) | H1 2024 (HKD/share) | | :--- | :--- | :--- | | Interim Dividend Per Share | 0.19 | 0.15 | - Share transfer registration will be suspended from Thursday, September 11, 2025, to Tuesday, September 16, 2025, to determine eligibility for the interim dividend[157](index=157&type=chunk) [Material Investments, Acquisitions, and Disposals](index=46&type=section&id=VII.2%20Material%20Investments,%20Acquisitions,%20and%20Disposals) For H1 2025, the Group held no material investments and undertook no significant acquisitions or disposals of subsidiaries or associates - The Group held no material investments during the six months ended June 30, 2025[158](index=158&type=chunk) - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2025[159](index=159&type=chunk) [Capital Expenditure](index=46&type=section&id=VII.3%20Capital%20Expenditure) For H1 2025, the Group had no plans for material investments or capital assets - For the six months ended June 30, 2025, the Group had no plans for material investments or capital assets[160](index=160&type=chunk) [Employees](index=46&type=section&id=VII.4%20Employees) As of June 30, 2025, the Group had **56 employees** in Hong Kong and **256** in Brazil, with staff costs of **HKD 62.5 million** Employee Numbers and Costs | Region | June 30, 2025 (Number of Employees) | December 31, 2024 (Number of Employees) | | :--- | :--- | :--- | | Hong Kong | 56 | 53 | | Brazil (excluding seasonal workers) | 256 | 265 | | Staff Costs (million HKD) | 62.5 | 63.1 | - The Group strives to provide employees with market-competitive compensation, reviewing remuneration annually based on market trends, years of service, professional experience, and performance appraisals[161](index=161&type=chunk) - The Group provides induction training to all employees and specific additional professional training based on job responsibilities[161](index=161&type=chunk) [Events After Reporting Period](index=46&type=section&id=VII.5%20Events%20After%20Reporting%20Period) The Board declared an interim dividend of **HKD 0.19 per share** for H1 2025, with no other material post-reporting period events - The Board declared an interim dividend of **HKD 0.19 per share** for the six months ended June 30, 2025[162](index=162&type=chunk) - Other than the above, there were no other material events after June 30, 2025, requiring disclosure by the Group[163](index=163&type=chunk) [Use of Net Proceeds from Initial Public Offering](index=47&type=section&id=VII.6%20Use%20of%20Net%20Proceeds%20from%20Initial%20Public%20Offering) IPO net proceeds were **HKD 904 million**; **HKD 420.3 million** remains, to be used by June 30, 2027, for investments and development Use of Net Proceeds from Initial Public Offering | Purpose | Approx. % of Total | Actual Net Proceeds (million HKD) | Unused Amount as of Jan 1, 2025 (million HKD) | Amount Used from Jan 1 to June 30, 2025 (million HKD) | Unused Amount as of June 30, 2025 (million HKD) | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Investments and acquisitions complementing the Group's business | 45% | 406.8 | 81.4 | – | 81.4 | Remaining funds to be used by June 30, 2027 | | Support for the Group's continuous business development | 20% | 180.8 | 165.1 | 4.1 | 161.0 | Remaining funds to be used by June 30, 2027 | | Strategic business cooperation with other international tobacco companies, including exploring and developing emerging tobacco markets | 20% | 180.8 | 178.6 | 0.7 | 177.9 | Remaining funds to be used by June 30, 2027 | | General working capital | 10% | 90.4 | – | – | – | N/A | | Improvement of the Group's procurement and sales resource management and optimization of its operational management | 5% | 45.2 | 4.5 | 4.5 | – | N/A | | **Total** | **100%** | **904.0** | **429.6** | **9.3** | **420.3** | - | - Net proceeds were approximately **HKD 904 million**, with **HKD 9.3 million** used and **HKD 420.3 million** remaining[165](index=165&type=chunk)[166](index=166&type=chunk) - Remaining funds are expected to be utilized by June 30, 2027, primarily for investments and acquisitions, business development, and strategic cooperation[166](index=166&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=48&type=section&id=VII.7%20Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares,%20and%20Debentures) As of June 30, 2025, no directors or chief executives held interests or short positions in the company's shares or debentures - As of June 30, 2025, no directors or chief executives of the Company held any interests or short positions in any shares, underlying shares, or debentures of the Company or its associated corporations[167](index=167&type=chunk) [Rights of Directors, Chief Executive, and Employees to Acquire Shares](index=48&type=section&id=VII.8%20Rights%20of%20Directors,%20Chief%20Executive,%20and%20Employees%20to%20Acquire%20Shares) For H1 2025, no arrangements were made for directors, chief executives, or their families to acquire shares or debentures for profit - For the six months ended June 30, 2025, neither the Company, its holding company, nor any subsidiary of its holding company made any arrangements for directors, chief executives, or their close associates to acquire benefits by acquiring shares or debentures[168](index=168&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=48&type=section&id=VII.9%20Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2025, China Tobacco International Group beneficially owned **72.29%** of the company's shares, making China Tobacco a major shareholder Long Positions of Substantial Shareholders in the Company's Shares and Underlying Shares | Shareholder Name | Nature of Interest | Ordinary Shares Held | % of Total Issued Shares | | :--- | :--- | :--- | :--- | | China Tobacco International Group | Beneficial Owner | 500,010,000 | 72.29% | | China Tobacco General Corporation | Controlled Corporation Interest | 500,010,000 | 72.29% | - China Tobacco General Corporation directly controls one-third or more of the voting rights at China Tobacco International Group's general meetings, thus China Tobacco International Group's interests are deemed as China Tobacco General Corporation's interests[169](index=169&type=chunk) [Changes in Directors' Biographical Details](index=49&type=section&id=VII.10%20Changes%20in%20Directors'%20Biographical%20Details) At the AGM on June 20, 2025, **Shao Yan** was re-elected as non-executive director, and **Wang Chengrui** and **Mao Zilu** as executive directors - **Mr. Shao Yan** was re-elected as a non-executive director, and **Mr. Wang Chengrui** and **Ms. Mao Zilu** were re-elected as executive directors[172](index=172&type=chunk) [Purchase, Sale, or Redemption of the Company's Listed Securities](index=49&type=section&id=VII.11%20Purchase,%20Sale,%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For H1 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities - For the six months ended June 30, 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[173](index=173&type=chunk) [Audit Committee](index=49&type=section&id=VII.12%20Audit%20Committee) The Audit Committee reviewed the H1 2025 unaudited interim results, accounting standards, and discussed internal controls and financial reporting - The Audit Committee reviewed the Group's unaudited consolidated interim results for the six months ended June 30, 2025, and accounting standards, and discussed internal control and financial reporting matters[174](index=174&type=chunk) [Compliance with Code Provisions of Corporate Governance Code](index=49&type=section&id=VII.13%20Compliance%20with%20Code%20Provisions%20of%20Corporate%20Governance%20Code) For H1 2025, the company complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules - The Company complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules[175](index=175&type=chunk) [Compliance with Model Code](index=49&type=section&id=VII.14%20Compliance%20with%20Model%20Code) The company adopted the Model Code for directors' securities transactions, with all directors confirming compliance during the reporting period - The Company adopted the Model Code set out in Appendix C3 of the Listing Rules to regulate directors' securities transactions[176](index=176&type=chunk) - All directors confirmed compliance with the standards set out in the Model Code for the six months ended June 30, 2025[176](index=176&type=chunk) [Appendix D2 of the Listing Rules](index=49&type=section&id=VII.15%20Appendix%20D2%20of%20the%20Listing%20Rules) The company confirms no material changes to existing information regarding Appendix D2, paragraph 32 of the Listing Rules, other than as disclosed - The Company confirmed that there were no material changes to the existing information regarding matters listed in paragraph 32 of Appendix D2 of the Listing Rules compared to the Company's 2024 annual report disclosures[177](index=177&type=chunk) [Independent Auditor's Review Report](index=50&type=section&id=VIII.%20Independent%20Auditor's%20Review%20Report) [Review Conclusion](index=50&type=section&id=VIII.1%20Review%20Conclusion) KPMG reviewed the H1 2025 interim financial report, concluding no material non-compliance with HKAS 34 - KPMG reviewed this interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[178](index=178&type=chunk)[179](index=179&type=chunk) - The review concluded that nothing has come to their attention that causes them to believe the interim financial report as of June 30, 2025, is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[180](index=180&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=51&type=section&id=IX.%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Overview of Profit or Loss and Comprehensive Income](index=51&type=section&id=IX.1%20Overview%20of%20Profit%20or%20Loss%20and%20Comprehensive%20Income) H1 2025 revenue was **HKD 10.316 billion**, gross profit **HKD 946.5 million**, and profit attributable to equity holders **HKD 706.4 million** Consolidated Statement of Profit or Loss and Other Comprehensive Income (for the six months ended June 30) | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 10,316,249 | 8,704,047 | | Cost of sales | (9,369,773) | (7,739,832) | | Gross Profit | 946,476 | 964,215 | | Net other income | 71,973 | 68,426 | | Administrative and other operating expenses | (79,450) | (74,862) | | Operating profit | 938,999 | 957,779 | | Finance costs | (82,902) | (115,463) | | Profit before tax | 856,097 | 842,316 | | Income tax | (133,537) | (162,614) | | Profit for the period | 722,560 | 679,702 | | Profit for the period attributable to equity holders of the Company | 706,353 | 643,341 | | Profit for the period attributable to non-controlling interests | 16,207 | 36,361 | | Total comprehensive income for the period | 727,976 | 669,530 | | Earnings per share (HKD) | 1.02 | 0.93 | [Consolidated Statement of Financial Position](index=52&type=section&id=X.%20Consolidated%20Statement%20of%20Financial%20Position) [Overview of Assets, Liabilities, and Equity](index=52&type=section&id=X.1%20Overview%20of%20Assets,%20Liabilities,%20and%20Equity) As of June 30, 2025, total non-current assets were **HKD 534.1 million**, current assets **HKD 9.469 billion**, and net assets **HKD 3.701 billion** Consolidated Statement of Financial Position (as of June 30, 2025) | Metric | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Non-current assets | 534,137 | 444,363 | | Current assets | 9,468,623 | 9,372,292 | | Inventories | 3,289,012 | 5,425,745 | | Trade and other receivables (current) | 2,204,559 | 1,055,593 | | Cash and cash equivalents | 1,231,374 | 517,466 | | Short-term bank deposits | 2,743,678 | 2,340,108 | | Current liabilities | 6,224,545 | 6,534,481 | | Bank borrowings | 2,491,975 | 2,947,744 | | Net current assets | 3,244,078 | 2,837,811 | | Net assets | 3,700,825 | 3,187,270 | | Total equity | 3,700,825 | 3,187,270 | [Consolidated Statement of Changes in Equity](index=54&type=section&id=XI.%20Consolidated%20Statement%20of%20Changes%20in%20Equity) [Overview of Changes in Equity](index=54&type=section&id=XI.1%20Overview%20of%20Changes%20in%20Equity) H1 2025 equity attributable to owners increased to **HKD 3.503 billion**, driven by profit and other comprehensive income Consolidated Statement of Changes in Equity (for the six months ended June 30) | Metric | Balance as of Jan 1, 2025 (thousand HKD) | Profit for the Period (thousand HKD) | Other Comprehensive Income (thousand HKD) | Dividends Approved in Prior Year (thousand HKD) | Balance as of June 30, 2025 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total equity attributable to equity holders of the Company | 3,005,174 | 706,353 | 5,416 | (214,421) | 3,502,522 | | Non-controlling interests | 182,096 | 16,207 | – | – | 198,303 | | **Total** | **3,187,270** | **722,560** | **5,416** | **(214,421)** | **3,700,825** | [Condensed Consolidated Statement of Cash Flows](index=56&type=section&id=XII.%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) [Overview of Cash Flows](index=56&type=section&id=XII.1%20Overview%20of%20Cash%20Flows) H1 2025 net cash from operating activities was **HKD 1.641 billion**, with a net increase in cash and cash equivalents of **HKD 718.7 million** Condensed Consolidated Statement of Cash Flows (for the six months ended June 30) | Activity | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Net cash from operating activities | 1,641,444 | 414,603 | | Net cash used in investing activities | (377,009) | (335,650) | | Net cash (used in)/from financing activities | (545,776) | 44,035 | | Net increase in cash and cash equivalents | 718,659 | 122,988 | | Cash and cash equivalents at June 30 | 1,231,374 | 711,567 | [Notes to the Financial Statements](index=57&type=section&id=XIII.%20Notes%20to%20the%20Financial%20Statements) [General Information](index=57&type=section&id=XIII.1%20General%20Information) China Tobacco International (HK) is a Hong Kong-listed company, with China Tobacco as its ultimate controlling entity, engaged in various tobacco businesses - The Company was listed on June 12, 2019, with China Tobacco International Group Limited as its direct parent company and China Tobacco General Corporation as its ultimate controlling company[193](index=193&type=chunk) - The Group's principal businesses include leaf tobacco export, leaf tobacco import, cigarette export, new tobacco products export, and Brazil operations[194](index=194&type=chunk) [Basis of Preparation](index=58&type=section&id=XIII.2%20Basis%20of%20Preparation) This interim financial report is prepared under HKEX Listing Rules and HKAS 34, reviewed by KPMG, using consistent accounting policies - This interim financial report has been prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34[195](index=195&type=chunk) - The interim financial report is unaudited but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[195](index=195&type=chunk) - Management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts when preparing the report[195](index=195&type=chunk) [Changes in Accounting Policies](index=58&type=section&id=XIII.3%20Changes%20in%20Accounting%20Policies) The Group applied HKAS 21 amendments on foreign exchange, with no material impact due to the absence of non-convertible foreign currency transactions - The Group has applied the amendments to Hong Kong Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability' for this accounting period[197](index=197&type=chunk) - As the Group did not undertake any foreign currency transactions where one foreign currency is not exchangeable into another, these amendments had no material impact on this interim report[197](index=197&type=chunk) [Revenue and Segment Reporting](index=59&type=section&id=XIII.4%20Revenue%20and%20Segment%20Reporting) This section details the Group's revenue sources and segment reporting, categorized by product/service lines and geographical regions [Revenue](index=59&type=section&id=XIII.4.1%20Revenue) H1 2025 customer contract revenue totaled **HKD 10.316 billion**, primarily from leaf tobacco sales and mainland China Customer Contract Revenue by Major Product and Service Line (for the six months ended June 30) | Product/Service Line | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Leaf tobacco product sales | 9,745,783 | 8,112,880 | | Cigarette sales | 551,775 | 547,323 | | New tobacco product sales | 14,598 | 43,517 | | Services rendered | 4,093 | 327 | | **Total** | **10,316,249** | **8,704,047** | Revenue by Region (for the six months ended June 30) | Region | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Mainland China | 8,836,606 | 7,256,648 | | Republic of Indonesia | 927,803 | 716,963 | | Hong Kong | 162,462 | 94,137 | | Brazil | 141,299 | 200,339 | | Socialist Republic of Vietnam | 125,180 | 131,777 | | Republic of the Philippines | 23,747 | 18,803 | | Arab Republic of Egypt | 13,716 | 48,608 | | United Arab Emirates | – | 58,942 | | Other | 85,436 | 177,830 | | **Total** | **10,316,249** | **8,704,047** | [Segment Reporting](index=60&type=section&id=XIII.4.2%20Segment%20Reporting) The Group manages and reports five segments: leaf tobacco export/import, cigarette export, new tobacco products export, and Brazil operations - The Group's five reportable segments are: leaf tobacco export business, leaf tobacco import business, cigarette export business, new tobacco products export business, and Brazil operations[206](index=206&type=chunk) - Segment assets primarily include trade and other receivables and inventories, while segment liabilities primarily include trade and other payables and contract liabilities[205](index=205&type=chunk) Reportable Segment Results (for the six months ended June 30, 2025) | Segment | Revenue (thousand HKD) | Gross Profit (thousand HKD) | Assets (thousand HKD) | Liabilities (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Leaf Tobacco Export Business | 1,155,640 | 63,129 | 191,616 | 376,165 | | Leaf Tobacco Import Business | 8,398,894 | 687,162 | 4,306,869 | 2,756,577 | | Cigarette Export Business | 551,775 | 141,831 | 230,342 | 116,369 | | New Tobacco Products Export Business | 14,598 | 780 | 1,459 | 6,604 | | Brazil Operations | 195,342 | 53,574 | 940,884 | 58,617 | | Unallocated | – | – | 4,331,590 | 2,987,603 | | **Total** | **10,316,249** | **946,476** | **10,002,760** | **6,301,935** | [Net Other Income](index=62&type=section&id=XIII.5%20Net%20Other%20Income) H1 2025 net other income was **HKD 71.973 million**, mainly from interest income of **HKD 80.940 million** Net Other Income (for the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Net exchange (loss)/gain | (8,967) | 1,877 | | Interest income | 80,940 | 66,549 | | **Total** | **71,973** | **68,426** | [Profit Before Tax](index=63&type=section&id=XIII.6%20Profit%20Before%20Tax) This section details expenses deducted from profit before tax, including finance costs, depreciation, amortization, and inventory costs [Finance Costs](index=63&type=section&id=XIII.6.1%20Finance%20Costs) H1 2025 finance costs totaled **HKD 82.902 million**, primarily from bank borrowing interest of **HKD 72.852 million** Finance Costs (for the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Interest on bank borrowings | 72,852 | 101,615 | | Interest on lease liabilities | 946 | 70 | | Interest on provision | 113 | 58 | | Other finance costs | 8,991 | 13,720 | | **Total** | **82,902** | **115,463** | [Other Items](index=63&type=section&id=XIII.6.2%20Other%20Items) H1 2025 depreciation was **HKD 10.957 million**, intangible asset amortization **HKD 15.445 million**, and inventory costs **HKD 9.359 billion** Other Items (for the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Depreciation | 10,957 | 8,525 | | Amortization of intangible assets | 15,445 | 15,451 | | Short-term lease expenses | 1,001 | 1,290 | | Reversal of impairment loss on trade and other receivables | (707) | (949) | | Cost of inventories | 9,359,356 | 7,715,854 | [Income Tax](index=64&type=section&id=XIII.7%20Income%20Tax) This section details the Group's income tax components, including Hong Kong profits tax, overseas tax, deferred tax, and Pillar Two assessment [Income Tax in the Consolidated Financial Statements](index=64&type=section&id=XIII.7.1%20Income%20Tax%20in%20the%20Consolidated%20Financial%20Statements) H1 2025 income tax totaled **HKD 133.5 million**, comprising Hong Kong profits tax, overseas tax, and deferred tax reversal Income Tax (for the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Current tax – Hong Kong profits tax | 106,246 | 82,669 | | Current tax – Overseas | 113,539 | – | | Deferred tax | (86,248) | 79,945 | | **Total** | **133,537** | **162,614** | - Hong Kong profits tax provision is calculated at **16.5%** of the estimated assessable profits for the period[215](index=215&type=chunk) - The applicable tax rates for Brazilian corporate income tax and social contribution tax are **25%** and **9%**, respectively[215](index=215&type=chunk) [Pillar Two Income Tax](index=64&type=section&id=XIII.7.2%20Pillar%20Two%20Income%20Tax) The Group is subject to OECD Pillar Two rules from January 1, 2025, with an initial assessment indicating no material impact on financial statements - The Group is subject to the global anti-base erosion model rules ('Pillar Two Model Rules') issued by the Organisation for Economic Co-operation and Development[216](index=216&type=chunk) - From January 1, 2025, the Group is subject to Pillar Two income tax in the Hong Kong Special Administrative Region and Brazil[217](index=217&type=chunk) - The Group has initially assessed the potential impact of Pillar Two income tax expense and considers its impact on the consolidated financial statements not material[217](index=217&type=chunk) [Dividends](index=64&type=section&id=XIII.8%20Dividends) The 2024 final dividend of **HKD 0.31 per share** was paid, and an H1 2025 interim dividend of **HKD 0.19 per share** was declared Dividend Distribution | Dividend Type | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | 2024 final dividend (per share) | 0.31 | 0.32 | | 2024 final dividend (total) | 214,421,000 | 221,338,000 | | H1 2025 interim dividend (per share) | 0.19 | 0.15 | | H1 2025 interim dividend (total) | 131,419,000 | 103,752,000 | [Earnings Per Share](index=65&type=section&id=XIII.9%20Earnings%20Per%20Share) H1 2025 basic EPS was **HKD 1.02**, calculated from profit attributable to ordinary shareholders and weighted average shares outstanding Earnings Per Share (for the six months ended June 30) | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 1.02 | 0.93 | | Profit attributable to ordinary equity holders of the Company (thousand HKD) | 706,353 | 643,341 | | Weighted Average Number of Ordinary Shares Issued | 691,680,000 | 691,680,000 | - As no potential dilutive ordinary shares were issued, the diluted earnings per share presented is the same as the basic earnings per share[221](index=221&type=chunk) [Inventories](index=65&type=section&id=XIII.10%20Inventories) As of June 30, 2025, and December 31, 2024, the Group's inventories primarily comprised leaf tobacco in warehouses and in transit - The Group's inventories primarily comprise leaf tobacco in warehouses and in transit during the sales process[222](index=222&type=chunk) [Trade and Other Receivables](index=65&type=section&id=XIII.11%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables were **HKD 2.272 billion**, with most expected to be recovered within one year Trade and Other Receivables (as of June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Trade receivables | 1,674,316 | 610,985 | | Bills receivable | 20,214 | 127,855 | | Deposits, prepayments and other receivables | 319,987 | 101,912 | | Advances to producers | 164,095 | 201,438 | | Value-added tax and other recoverable taxes | 92,933 | 50,415 | | **Total** | **2,271,545** | **1,092,605** | | Current portion | 2,204,559 | 1,055,593 | | Non-current portion | 66,986 | 37,012 | Aging Analysis of Trade Receivables and Bills Receivable (by invoice date) | Aging | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | | Within 30 days | 1,611,415 | 71,136 | | 31 to 90 days | 34,421 | 401,163 | | Over 90 days | 48,694 | 266,541 | | **Total** | **1,694,530** | **738,840** | - Trade receivables are generally due within **30 to 180 days** from the invoice date, and the Group generally does not hold any collateral for the balances[225](index=225&type=chunk) [Cash and Cash Equivalents and Short-term Bank Deposits](index=67&type=section&id=XIII.12%20Cash%20and%20Cash%20Equivalents%20and%20Short-term%20Bank%20Deposits) As of June 30, 2025, cash and cash equivalents totaled **HKD 1.231 billion**, with short-term bank deposits of **HKD 2.744 billion** Cash and Cash Equivalents and Short-term Bank Deposits (as of June 30, 2025) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Cash and bank balances | 640,552 | 364,268 | | Certificates of deposit | 590,822 | 153,198 | | **Cash and cash equivalents** | **1,231,374** | **517,466** | | Short-term deposits with original maturity over three months | 2,743,678 | 2,340,108 | | **Total** | **3,975,052** | **2,857,574** | - Certificates of deposit have original maturity dates of less than three months and are held to meet short-term cash commitments[227](index=227&type=chunk) [Trade and Other Payables and Contract Liabilities](index=67&type=section&id=XIII.13%20Trade%20and%20Other%20Payables%20and%20Contract%20Liabilities) As of June 30, 2025, trade and other payables and contract liabilities totaled **HKD 3.576 billion**, with most due within one year Trade and Other Payables

Core Viewpoint - China Tobacco Hong Kong (06055) saw a significant increase in stock price, rising over 6% to HKD 46.7, with a trading volume of HKD 223 million, indicating positive market sentiment towards the company [1] Group 1: Business Performance - The three core business segments of China Tobacco Hong Kong contribute significantly to its revenue, with the import of tobacco leaf products accounting for 81.4%, export of tobacco leaf products for 11.2%, and cigarette exports for 5.3%, totaling 98.0% of revenue [1] - The gross profit contributions from these segments are 72.6% from tobacco leaf imports, 6.7% from tobacco leaf exports, and 15.0% from cigarette exports, aggregating to 94.3% of gross profit [1] Group 2: Market Developments - Guotai Junan Securities highlighted that British American Tobacco recently announced the launch of its glo series in Italy and Poland, including new products glo Hilo, glo HiloPlus, and virto heated tobacco sticks, following a positive market response in Japan [1] - The performance of Hilo in key European markets will be closely monitored for its sales impact [1] Group 3: Future Outlook - CITIC Securities anticipates steady growth in revenue and profit for China Tobacco Hong Kong in the first half of 2025, driven by robust growth in tobacco leaf import and export businesses, along with a decrease in financial expenses [1] - The company aims to maintain its strategic positioning as a platform for overseas capital market operations and international business expansion, suggesting potential for leapfrog development [1]

Core Viewpoint - 中烟香港's stock rose over 6% following the announcement of the glo series launching in Italy and Poland, indicating positive market sentiment towards the company's overseas strategy [1] Group 1: Stock Performance - 中烟香港's stock increased by 6.62%, reaching 46.7 HKD, with a trading volume of 223 million HKD [1] Group 2: Market Developments - 英美烟草 announced the upcoming launch of the glo series in Italy and Poland, which includes new products such as glo Hilo, glo HiloPlus, and virto heated tobacco capsules [1] - The glo Hilo product received positive market feedback after its nationwide launch in Japan on September 1, raising expectations for its performance in key European markets [1] Group 3: Business Contributions - 中烟香港's core business segments contribute to its revenue as follows: 81.4% from tobacco leaf import, 11.2% from tobacco leaf export, and 5.3% from cigarette export, totaling 98.0% of revenue [1] - The gross profit contributions are 72.6% from tobacco leaf import, 6.7% from tobacco leaf export, and 15.0% from cigarette export, totaling 94.3% of gross profit [1] Group 4: Future Outlook - 中信建投 forecasts steady revenue and profit growth for 中烟香港 in the first half of 2025, driven by strong growth in tobacco import and export businesses and a decrease in financial expenses [1] - The company aims to maintain its strategic positioning as a platform for overseas capital market operations and international business expansion, with expectations for significant growth through both organic and external collaboration [1]

Group 1: Market Performance - The Hang Seng Index rose by 1.41%, gaining 373 points to close at 26,812 points, while the Hang Seng Tech Index increased by 3.49% [1] - The early trading volume in the Hong Kong stock market reached HKD 192.4 billion [1] Group 2: Company Highlights - Baidu Group-SW (09888) surged by 15.9%, leading the gains among Hang Seng Tech Index constituents [1] - Alibaba-W (09988) saw a rise of 5% [1] - NIO-SW (09866) increased by over 8%, reaching a nearly one-year high ahead of the new ES8 launch [3] - China Tobacco Hong Kong (06055) rose by over 7%, achieving a new high after signing exclusive agency agreements for global markets [4] - Shandong High-Tech Holdings (00412) jumped by 14% following the announcement of a USD 100 million stock buyback plan [5] - Lens Technology (06613) increased by 6.8%, attributed to strong pre-order demand for the iPhone 17 [6] - China Education Holdings (00839) surged by over 16%, with expectations of significant valuation recovery in the private higher education sector [7] - Youzan (08083) rose by over 14%, as the company announced it is exploring the possibility of transferring to the main board for listing [8] Group 3: Industry Insights - The AI large model security assessment results indicated that major products from Tencent, Baidu, Alibaba, and Zhiyuan Huazhang exhibited fewer vulnerabilities, reflecting a high level of security protection [1] - CATL (宁德时代) shares rose over 5%, with the stock price surpassing HKD 500, marking a new high since its listing, while the company highlighted five major challenges in the energy storage industry [2]

Group 1: Market Performance - The Hang Seng Index rose by 1.41%, gaining 373 points to close at 26,812 points, while the Hang Seng Tech Index increased by 3.49% [1] - The early trading volume in Hong Kong stocks reached HKD 192.4 billion [1] Group 2: Company Highlights - Baidu Group-SW (09888) surged by 15.9%, leading the gains among Hang Seng Tech Index constituents [1] - Alibaba-W (09988) saw a rise of 5% [1] - NIO-SW (09866) increased by over 8%, reaching a nearly one-year high ahead of the new ES8 launch [2] - China Tobacco Hong Kong (06055) rose by over 7%, setting a new high after signing exclusive agency agreements for global markets [3] - Shandong High-Speed Holdings (00412) jumped by 14% following the announcement of a USD 100 million stock buyback plan [4] - Lens Technology (300433) (06613) increased by 6.8% due to strong pre-order demand for iPhone 17 [5] - China Education Holdings (00839) surged over 16% as private higher education sector shows signs of significant valuation recovery [6] - Youzan (08083) rose over 14% as the company explores the possibility of transferring to the main board for listing [6] Group 3: Industry Insights - The AI large model security assessment results indicate that major products from Tencent, Baidu, Alibaba, and others have shown fewer vulnerabilities, reflecting a high level of security [1] - Contemporary Amperex Technology Co., Ltd. (300750) (03750) saw its stock price exceed HKD 500, reaching a new high since its listing, while the CEO pointed out five major challenges in the energy storage industry [1]